Hyundai unveils the fully redesigned flagship large SUV, The All-New Palisade, at Maison D’Italie in Sujeong District, Seongnam, Gyeonggi Province, on January 14. (Yonhap)
SEOUL, July 14 (Korea Bizwire) — Hyundai Motor Group is doubling down on its strategy to weather U.S. tariffs without raising vehicle prices, prioritizing long-term market share over short-term profit margins.
Despite escalating trade tensions under President Donald Trump’s administration and the imposition of new import tariffs earlier this year, the South Korean auto giant has maintained a firm stance: keep sticker prices steady to strengthen its foothold in the world’s second-largest car market.
According to data from Wards Intelligence, Hyundai and Kia sold a combined 894,000 vehicles in the U.S. in the first half of 2025, capturing 11.0 percent of the market—up 0.5 percentage points from the same period last year. Hyundai accounted for 5.9 percent, and Kia 5.1 percent.
The company’s decision not to pass tariff-related costs on to consumers appears to be paying off. In March and April, Hyundai leveraged so-called “panic buying” as price-sensitive American consumers rushed to purchase vehicles ahead of anticipated hikes.
By May and June, it managed to hold its ground amid broader market slowdowns.
Industry analysts say the group’s reluctance to raise prices—even as competitors such as Toyota and Germany’s “Big Three” automakers have implemented price increases of around 5 percent—reflects a deliberate bet on brand equity and long-term U.S. market positioning.
“Hyundai seems to consider losing market share a bigger risk than a temporary dip in profit margins,” one auto industry executive said. “We expect this sales-driven approach to continue through the second half of the year.”
DB Financial Investment echoed this sentiment, projecting that Hyundai will likely delay price hikes until late 2025, relying on its robust earnings base to pursue volume growth.
On February 4 (local time), members of the press photograph Kia’s All-New K4 during a test-drive event held in Santa Monica, California, as part of the Asia Media Awards. (Yonhap)
Product Momentum Ahead
Hyundai is poised to roll out a trio of new models in the second half that could serve as catalysts for further expansion: the fully redesigned second-generation Palisade, the facelifted Ioniq 6, and Kia’s new K4 hatchback.
While only one new model—the Ioniq 9—debuted in the first half, Hyundai plans to triple that output in the coming months. The company is betting that these new entries will resonate with American consumers, building on the strong track records of their predecessors.
Since 2019, the Palisade has sold over 500,000 units in the U.S., while the Ioniq 6 has moved more than 31,000 units since its 2023 debut. The K4, successor to the K3 (Forte), builds on a legacy of over 1.5 million global sales since 2009.
The Palisade will also be available in a hybrid electric version, aligning with Hyundai’s growing hybrid portfolio. In the first half of this year, the group’s HEV sales in the U.S. surged 45.3 percent to 136,000 units, highlighting the segment’s growing consumer appeal.
Incentives Extended Amid Shifting Consumer Demand
To further bolster sales, Hyundai’s U.S. unit has extended a slate of incentives originally scheduled to expire in early July. The new deadline is now September 2. Discounts include $3,500 off the Santa Fe, $2,750 off the Palisade, and $7,500 off electric models like the Ioniq 5, 6, 9, and Kona Electric.
Experts suggest that Hyundai’s diverse portfolio—including competitively priced hybrids and sedans—could prove advantageous as American consumers respond to rising vehicle prices by shifting away from more expensive EVs and SUVs.
“Hyundai is well-positioned to benefit from evolving demand in the U.S.,” said Kim Kyung-yoo, senior researcher at the Korea Institute for Industrial Economics & Trade. “If prices keep climbing, we could see consumers gravitate toward hybrids and sedans—segments where Hyundai has a clear edge.”
Kevin Lee (kevinlee@koreabizwire.com)
